Equity futures were first manipulated up, then down, then even more up over the weekend where manipulating the tape is the rule, not the exception. The markets are not real, they are a computer controlled hologram – again, if you are not one of the money printing insiders with your own personal HFT and money to buy both sides of the political aisle, then you are simply donating to those who do if you participate in their charade they still refer to as markets. These markets are a reflection into the breakdown of the natural rule of law, and as we’ll discuss in a minute, that means that the current situation will not last. The dollar is slightly lower, bonds are lower (very little room to go even higher in my opinion), oil is lower, interesting move lower in gold & silver which I’ll discuss in a second, and food commodities are slightly higher.
Huge moves down in gold and silver have occurred in the past week. Over the weekend gold plunged all the way down to the current uptrend support line and is bouncing there, so far producing a long tailed hammer which may be a sign that buyers are stepping in here at support:
Should the current support at about $1,580 break, then the next support will be found in the $1,480 area… it is that support that represents the longer term uptrend line since early 2009. If that support were to give way, then it could be looking at a journey back down to the $1,000ish range:
Why is gold selling off? Four reasons: First is the sense that another wave of deflation is striking and that the Fed is no longer able to pull off more “stimulus”/ printing. Second is flat out manipulation of the market. Third is yet another very large margin hike – again manipulation of the market. And fourth is related to the current credit and liquidity squeeze necessitating those caught in the squeeze sell REAL things because they are trapped in other positions that are not as liquid.
To me the fundamentals have not changed – waves of deflation are expected, but in the end all deflationary waves will be resisted by those in charge of the production of money and therefore the currency in its present form will not survive. That said, the more deflation there is, the longer it will survive. As long as PRIVATE individuals and private corporations are in control of the production of money, owning physical gold and silver is simply far more REAL than participating in their holographic rob you paper games. If you get real and use deflation as a good time to do so, then you can let them have fun playing with themselves in their narcissistic fantasy world while you sleep well at night. Remember that if you own it, that it’s all a relative game.
This morning the Chicago “Fed” National Activity Index was released, showing more economic weakness:
Pulled down by the weak employment report, the Chicago Fed National Activity index fell to minus 0.43 in August from plus 0.02 in July (revised from -0.06). Employment-related indicators fell to -0.08 vs July's plus 0.12, while consumption & housing weakened to -0.35 from -0.33 in July. Production-related indicators rose 0.01 in August but are down sharply from 0.26 in July. Despite the big decline in August's overall index, the three-month moving average fell only slightly to -0.28 from -0.27 in July (revised from -0.29).
Not that I trust any data from the “Fed.”
New Home Sales are released at 10:00 Eastern (not that I trust any data from the NAR). Consumer Confidence comes tomorrow, and we get conned pretty heavily the rest of the week, including the final revision of the very trumped up Q2 GDP. Remember that this week is end of month, and also end of quarter – the end/beginning of quarters tend to have more game playing involved.
Clearly highlighting the continued breakdown in the natural rule of law, the New York “Fed” recently released a Request for Proposal (RFP) looking for bids to develop an internet related “sentiment” monitoring system that would act kind of like Clif High’s Web-bots that go around in cyber space monitoring the following:
- Track reach and spread of your messages and press releases
- Handle crisis situations
- Continuously monitor conversations
- Identify and reach out to key bloggers and influencers
- Spot emerging trends, discussions themes and topics
This type of thing is happening more and more both with the central criminal bankers and with our own government which is now completely owned and controlled by the central criminal bankers. There is no real check and balance anymore, they have all be usurped by the ability of private individuals to create and control the supply of money. That ability gives those closest to it, power and control. That is what the “Federal Reserve Act” was, it was the grabbing of power and control.
Here’s THE thing… giving the power and control to a few private individuals goes directly against the natural rule of law, and therefore it cannot/ will not last. In fact, they are losing their power and control right now. Desperate people do desperate things, that’s why we’re seeing bizarre attempts to more directly control the population and to retain their power.
This is what I am now calling “Creeping Fascism.” By fascism I mean something similar to the first definition found for that term:
1. (sometimes initial capital letter) a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.Most references refer to Mussolini and/ or to the rise of Hitler. These “colorful” characters rose following times of severe economic upheaval. Their nations were down, and they struggled to maintain their grip on global power and control. As they were losing power and control more bizarre acts (other events) rose to the surface.
We see many bizarre events and attempts to hold onto power here in the U.S. today. We saw the events of 9/11 and the bizarre self-defeating “war on terror” as a result. Bizarre acts such as invading countries on false pretenses along with all-out campaigns to spin and control perceptions. Fascism almost always involves vilifying one particular group – for the Nazis it was the Jews, and in the current state of creeping fascism it is Arabs in general, and the boogyman “Al Qaida” specifically.
Again, since power and control are waning for the private central bankers, the acts become more and more desperate. History shows that those acts will eventually lead to significant “other events” which will at some point cause the change that is necessary to restore the natural rule of law – that means that the people in general will again be in power and control – it is the natural order of being, it is where humanity is marching when we stand back and look at the big picture progression of mankind.
While I don’t normally like Niall Ferguson’s overly smooth delivery, he brushed on the rule of law in his latest TED talk “The 6 killer apps of prosperity.” Please take the time to listen through the second half of this video, it is these 6 killer apps where he lays out the necessary ingredients for true prosperity – and I agree with his sentiment on these points, although I think I have written more clearly about the rule of law and the necessary ingredients thereof. He points to East and West Germany, as well as North and South Korea as contrasting examples of this point – one has a more natural rule of law and prospers, while the other with the unnatural rules of law, more closely resembling fascism, are mired in a dark ages type of squalor. I would also add as another example to his list the countries of Haiti versus the Dominican Republic.
Niall’s six killer apps are:
2. The Scientific Revolution
3. Property Rights
4. Modern Medicine
5. The Consumer Society
6. The Work Ethic
To me, Competition, Property rights, and the Work Ethic are all related to more basic tenants of the rule of law. Freedom is a basic tenant that underlies all of Niall’s concepts – this is why our Constitution is so important. But our Constitution is rooted even more deeply, it is the progression of mankind’s trials and errors to that point in humanity’s journey. The march of humanity is a journey that never ends, and our Constitution is not perfect, although it is the closest structure yet in mankind’s march to align our rules of law with those of nature.
For progress to be made in this regard, we must understand that good communication and empathy underlie and surround the rule of law – the population must not be controlled, coerced, or pressured, or the natural rule of law will not exist. This is exactly what things like this latest RFP from the New York “Fed” is – an attempt to control you and me. It is meant to make me fear writing on subjects like this, and it is meant to make you fear talking about it in open communications – it’s about control, it’s about power.
I simply refuse to cede to them my freedom, they cannot silence me, nor guide my discussion. I would implore each and everyone of you to resist this creeping fascism and to never willingly give up the freedom which rightly belongs to you. Your actions will either enable or disable their attempts to control you. Turn off their propaganda news channels, get real with your money, and support others who are real and businesses who are conducting real activities outside of their increasingly desperate central banker box.